Major Rating Factors:
Good liquidity (6.8 on a scale of 0 to 10) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Fair profitability index (3.8) with operating losses during 2022 and 2023. Return on equity has been low, averaging 1.2% over the past five years. Strong long-term capitalization index (8.8) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Other Rating Factors:
Ample reserve history (9.3) that helps to protect the company against sharp claims increases. Excellent overall results on stability tests (8.1). Stability strengths include excellent operational trends and excellent risk diversification.
Stability Factors:
F - Negative cash flow.
Principal Lines of Business:
Personal/comm auto (67.2%), homeowners (28.6%), comm multi (1.7%), work comp (0.4%), farmowners (0.4%), other (1.6%)
Licensed in:
IL, MI, MN, ND, NE, NY, PA, WI
Principal Investments:
Common stock (27.0%), investment grade bonds (24.5%), non investment grade bonds (2.7%), real estate (0.7%), preferred stock (0.5%), other (44.5%)
Corporate Info
Group Affiliation
Auto Club Ins Association Group
Investment Rating
--
Company Address
One Auto Club Drive
Dearborn, MI 48126
Dearborn, MI 48126
Phone Number
(313) 336-1234
NAIC Number
21202
Website
Largest Affiliates